Comprehensive M&A data with integrated detailed company information

ITG, Qianhai bid for Century
Posted on Wednesday, 12 September 2018 13:28
Xiamen ITG and Qianhai Financial Holding are acquiring a 91.7 per cent stake in Century Securities for CNY 3.56 billion (USD 518.12 million).

A government team is running the disposal as there has been a significant question mark hanging over the ownership of the independent broker dealer for the last five years.

In 2013, Anbang Insurance acquired a 55.3 per stake in Century from Beijing Tourism and 33.4 per cent from Guangzhou Tianlun Wanyi for a total of CNY 1.70 billion, according to a filing posted on China Beijing Equity Exchange in May.

However, China Securities Regulatory Commission never endorsed the transfer, meaning the financial conglomerate has not been able to register as a formal shareholder.

Now that a government team is in charge of divesting Anbang’s assets, this five-year-old deal has been acknowledged in order to drive forward a sale to the two state-owned enterprises.

ITG is proposing to acquire a 44.7 per cent stake for CNY 1.73 billion, while Qianhai is investing CNY 1.83 billion for 47.0 per cent.

Century may have turned a profit for four consecutive years, but its bottom line has plummeted from CNY 124.00 million in 2014 to just CNY 2.00 million in 2017 and in the first four months of 2018 it incurred a loss of CNY 51.00 million.

Anbang bought the broker as part of an aggressive expansion strategy that subsequently raised eyebrows and brought the insurer under an unprecedented crackdown on risks to the country’s financial system by Beijing earlier this year.

The government seized control in February after accusing former chairman Wu Xiaohui, who has since been found guilty of fraud and embezzlement, of economic crimes.

Industry-funded body China Insurance Security injected CNY 60.80 billion into the conglomerate in April to ensure solvency and protect the interests of policyholders and consumers.

© Zephus Ltd